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jazzz · 07-25-2008, 07:36 AM

Hi
for those who are interested in Forex trading but cannot understand terminology. Here are some of them:

Leverage is used to trade the forex market’s day to day very small movements. Finexo's sophisticated trading platform enables a yield of profits from a relatively small amount: an initial investment of $100 at a 200:1 leverage, generates yields from an amount of $20,000. With leverage, a .5% rise in the rate of a currency turns to a profit of 100% on your initial deposit amount!
Nonetheless, leveraged trading entails risks; therefore, traders should take everything into consideration. On the other hand, on the Finexo platform traders cannot lose an amount greater than the total funds in the account.

The concept of leverage increases the trader's initial investment, or margin, by hundreds of percent. This initial sum is considered a deposit in "good faith" which establishes the ratio of leverage, and helps the trader withstand his losses, which, in any case, cannot be higher than the sum of the margin.

The smallest changes in currency rates are measured by Pips. Since the Forex Market is characterized by relatively small fluctuations, the pip is, in most cases, the fourth digit after the decimal point. Yet in some currencies, such as the Japanese yen, the pip is the second digit after the decimal point. By using pips, the difference between the ask and bid prices can be measured at any given time, as well as the daily volatility of these values, which ultimately determines profit or loss.

Please refer this link for more basics on forex
Finexo Forex tutor
Forec comcepts
Forex basic.

07-25-2008, 07:36 AM	#9 (permalink)
jazzz Junior Crapper Join Date: Jul 2008 Posts: 74 My Mood: Thanks: 0 Thanked 1 Time in 1 Post	Re: The learning cycle for a newbie trader Hi for those who are interested in Forex trading but cannot understand terminology. Here are some of them: Leverage is used to trade the forex market’s day to day very small movements. Finexo's sophisticated trading platform enables a yield of profits from a relatively small amount: an initial investment of $100 at a 200:1 leverage, generates yields from an amount of $20,000. With leverage, a .5% rise in the rate of a currency turns to a profit of 100% on your initial deposit amount! Nonetheless, leveraged trading entails risks; therefore, traders should take everything into consideration. On the other hand, on the Finexo platform traders cannot lose an amount greater than the total funds in the account. The concept of leverage increases the trader's initial investment, or margin, by hundreds of percent. This initial sum is considered a deposit in "good faith" which establishes the ratio of leverage, and helps the trader withstand his losses, which, in any case, cannot be higher than the sum of the margin. The smallest changes in currency rates are measured by Pips. Since the Forex Market is characterized by relatively small fluctuations, the pip is, in most cases, the fourth digit after the decimal point. Yet in some currencies, such as the Japanese yen, the pip is the second digit after the decimal point. By using pips, the difference between the ask and bid prices can be measured at any given time, as well as the daily volatility of these values, which ultimately determines profit or loss. Please refer this link for more basics on forex Finexo Forex tutor Forec comcepts Forex basic. Last edited by jazzz; 10-25-2008 at 08:30 AM..